The Bank of England today took decisive action to shore up the economy and stave off a deep recession by ordering an aggressive cut in interest rates by 1.5 per cent to 3 per cent, taking the base rate to its lowest rate in more than half a century.

The drastic step, which reduced borrowing costs to a level not seen since May 1954, came as fears of a prolonged slump in Britain have multiplied after a deluge of dire economic news.

Today's surprise reduction is the biggest cut since March 1981 when the interest rate was reduced by 2 per cent. The last time borrowing costs were cut by 1.5 per cent was in 1854.

The Bank's move means that homeowners with a £150,000 interest-only tracker mortgage, which is pegged to the base rate, could save as much as £190 a month.

Good news really, I think. But getting your hands on it is not easy because you cant get cheap money unless you are golden and don't need it. This might stimulate business and homeowners who need to fix home re-fi & get some money--hopefully--I am a contractor in CA. & work is a not worth mentioning right now!